EQUINOR ASA-SPON ADR (EQNR)
US29446M1027 - ADR
EQNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 205 industry peers in the Oil, Gas & Consumable Fuels industry. While EQNR has a great profitability rating, there are some minor concerns on its financial health. EQNR has a bad growth rate and is valued cheaply. This makes EQNR very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EQNR was profitable.
EQNR had a positive operating cash flow in the past year.
Of the past 5 years EQNR 4 years were profitable.
Each year in the past 5 years EQNR had a positive operating cash flow.
1.2 Ratios
EQNR's Return On Assets of 6.97% is fine compared to the rest of the industry. EQNR outperforms 61.69% of its industry peers.
EQNR has a Return On Equity of 21.23%. This is in the better half of the industry: EQNR outperforms 75.62% of its industry peers.
EQNR's Return On Invested Capital of 24.09% is amongst the best of the industry. EQNR outperforms 96.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EQNR is significantly above the industry average of 29.03%.
The 3 year average ROIC (34.03%) for EQNR is well above the current ROIC(24.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 21.23% | ||
| ROIC | 24.09% |
ROA(3y)10.76%
ROA(5y)5.89%
ROE(3y)33.24%
ROE(5y)17.59%
ROIC(3y)34.03%
ROIC(5y)23.28%
1.3 Margins
With a Profit Margin value of 8.98%, EQNR perfoms like the industry average, outperforming 41.29% of the companies in the same industry.
In the last couple of years the Profit Margin of EQNR has grown nicely.
Looking at the Operating Margin, with a value of 29.68%, EQNR is in the better half of the industry, outperforming 63.68% of the companies in the same industry.
In the last couple of years the Operating Margin of EQNR has grown nicely.
The Gross Margin of EQNR (51.36%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EQNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.68% | ||
| PM (TTM) | 8.98% | ||
| GM | 51.36% |
OM growth 3Y64.3%
OM growth 5Y6.9%
PM growth 3YN/A
PM growth 5Y3.01%
GM growth 3Y0.48%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
EQNR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EQNR has less shares outstanding than it did 1 year ago.
EQNR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EQNR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.68 indicates that EQNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
EQNR has a Altman-Z score of 2.68. This is in the better half of the industry: EQNR outperforms 72.64% of its industry peers.
EQNR has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as EQNR would need 3.34 years to pay back of all of its debts.
EQNR has a better Debt to FCF ratio (3.34) than 68.16% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that EQNR is somewhat dependend on debt financing.
EQNR has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.68 |
ROIC/WACC3.71
WACC6.5%
2.3 Liquidity
A Current Ratio of 1.48 indicates that EQNR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, EQNR is in the better half of the industry, outperforming 60.70% of the companies in the same industry.
EQNR has a Quick Ratio of 1.38. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EQNR (1.38) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
EQNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.00%.
EQNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.15% yearly.
The Revenue has decreased by -6.29% in the past year.
EQNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y11.15%
EPS Q2Q%-14.13%
Revenue 1Y (TTM)-6.29%
Revenue growth 3Y32.67%
Revenue growth 5Y6.35%
Sales Q2Q%-1.94%
3.2 Future
The Earnings Per Share is expected to decrease by -4.61% on average over the next years.
The Revenue is expected to decrease by -4.44% on average over the next years.
EPS Next Y-1.06%
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
EPS Next 5Y-4.61%
Revenue Next Year-3.63%
Revenue Next 2Y-5.53%
Revenue Next 3Y-4.68%
Revenue Next 5Y-4.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.76, the valuation of EQNR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 74.13% of the companies listed in the same industry.
EQNR is valuated cheaply when we compare the Price/Earnings ratio to 27.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.74, the valuation of EQNR can be described as very cheap.
Based on the Price/Forward Earnings ratio, EQNR is valued a bit cheaper than 73.63% of the companies in the same industry.
EQNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
99.00% of the companies in the same industry are more expensive than EQNR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EQNR is valued a bit cheaper than the industry average as 75.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.8 | ||
| EV/EBITDA | 1.1 |
4.3 Compensation for Growth
The excellent profitability rating of EQNR may justify a higher PE ratio.
EQNR's earnings are expected to decrease with -2.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.72%, EQNR is a good candidate for dividend investing.
EQNR's Dividend Yield is a higher than the industry average which is at 6.70.
EQNR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
5.2 History
The dividend of EQNR is nicely growing with an annual growth rate of 34.90%!
EQNR has paid a dividend for at least 10 years, which is a reliable track record.
EQNR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)34.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EQNR pays out 99.55% of its income as dividend. This is not a sustainable payout ratio.
EQNR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP99.55%
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
EQUINOR ASA-SPON ADR
NYSE:EQNR (1/8/2025, 8:04:00 PM)
After market: 25.37 +0.07 (+0.28%)25.3
-0.55 (-2.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.83%
Inst Owner Change0.01%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap69.15B
Analysts66.86
Price Target26.44 (4.51%)
Short Float %1.61%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
Dividend Growth(5Y)34.9%
DP99.55%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.98%
Min EPS beat(2)3.9%
Max EPS beat(2)14.06%
EPS beat(4)3
Avg EPS beat(4)4.24%
Min EPS beat(4)-27.01%
Max EPS beat(4)26%
EPS beat(8)6
Avg EPS beat(8)8.83%
EPS beat(12)8
Avg EPS beat(12)7.32%
EPS beat(16)10
Avg EPS beat(16)-8.64%
Revenue beat(2)2
Avg Revenue beat(2)2.76%
Min Revenue beat(2)1.92%
Max Revenue beat(2)3.61%
Revenue beat(4)2
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-10.13%
Max Revenue beat(4)3.61%
Revenue beat(8)3
Avg Revenue beat(8)-5.97%
Revenue beat(12)7
Avg Revenue beat(12)-2.77%
Revenue beat(16)8
Avg Revenue beat(16)-3.19%
PT rev (1m)0.1%
PT rev (3m)-8.1%
EPS NQ rev (1m)-2.59%
EPS NQ rev (3m)-4.47%
EPS NY rev (1m)-2.59%
EPS NY rev (3m)-3.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.66 | ||
| P/FCF | 7.8 | ||
| P/OCF | 3.39 | ||
| P/B | 1.56 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 1.1 |
EPS(TTM)3.26
EY12.89%
EPS(NY)3.27
Fwd EY12.93%
FCF(TTM)3.24
FCFY12.82%
OCF(TTM)7.47
OCFY29.54%
SpS38.35
BVpS16.23
TBVpS13.91
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 21.23% | ||
| ROCE | 30.49% | ||
| ROIC | 24.09% | ||
| ROICexc | 34.46% | ||
| ROICexgc | 37.82% | ||
| OM | 29.68% | ||
| PM (TTM) | 8.98% | ||
| GM | 51.36% | ||
| FCFM | 8.46% |
ROA(3y)10.76%
ROA(5y)5.89%
ROE(3y)33.24%
ROE(5y)17.59%
ROIC(3y)34.03%
ROIC(5y)23.28%
ROICexc(3y)50.58%
ROICexc(5y)33.63%
ROICexgc(3y)54.55%
ROICexgc(5y)36.45%
ROCE(3y)44.26%
ROCE(5y)30.22%
ROICexcg growth 3Y131.64%
ROICexcg growth 5Y15.23%
ROICexc growth 3Y132.76%
ROICexc growth 5Y16.24%
OM growth 3Y64.3%
OM growth 5Y6.9%
PM growth 3YN/A
PM growth 5Y3.01%
GM growth 3Y0.48%
GM growth 5Y1.5%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 116.53% | ||
| Cap/Sales | 11.03% | ||
| Interest Coverage | 33.85 | ||
| Cash Conversion | 49.78% | ||
| Profit Quality | 94.16% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.68 |
F-Score5
WACC6.5%
ROIC/WACC3.71
Cap/Depr(3y)100.93%
Cap/Depr(5y)87.14%
Cap/Sales(3y)8.25%
Cap/Sales(5y)11.89%
Profit Quality(3y)151.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y11.15%
EPS Q2Q%-14.13%
EPS Next Y-1.06%
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
EPS Next 5Y-4.61%
Revenue 1Y (TTM)-6.29%
Revenue growth 3Y32.67%
Revenue growth 5Y6.35%
Sales Q2Q%-1.94%
Revenue Next Year-3.63%
Revenue Next 2Y-5.53%
Revenue Next 3Y-4.68%
Revenue Next 5Y-4.44%
EBIT growth 1Y-27.78%
EBIT growth 3Y117.98%
EBIT growth 5Y13.69%
EBIT Next Year5.37%
EBIT Next 3Y-0.36%
EBIT Next 5Y-2.52%
FCF growth 1Y-71.26%
FCF growth 3Y94.83%
FCF growth 5Y11.15%
OCF growth 1Y-47.65%
OCF growth 3Y33.48%
OCF growth 5Y4.63%